Unilever's Demand Sensing and Inventory Optimisation with Terra Technology
Customer Company Size
Large Corporate
Region
- Europe
- America
- Asia
Country
- United States
- India
Product
- Enterprise Demand Sensing Platform
- Multi-Enterprise Inventory Optimisation
- SAP Advanced Planner and Optimizer (APO)
Tech Stack
- Demand Sensing
- Inventory Optimisation
- SAP APO Integration
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Productivity Improvements
- Customer Satisfaction
- Environmental Impact Reduction
Technology Category
- Analytics & Modeling - Predictive Analytics
- Functional Applications - Inventory Management Systems
- Application Infrastructure & Middleware - Data Exchange & Integration
Applicable Industries
- Consumer Goods
- Retail
Use Cases
- Inventory Management
- Predictive Maintenance
- Supply Chain Visibility
Services
- System Integration
- Software Design & Engineering Services
About The Customer
Unilever is one of the largest FMCG manufacturers globally, with a presence in over 190 countries and a portfolio of more than 400 brands. The company serves 2 billion consumers daily and primarily uses SAP systems for its operations. Unilever's demand planning is maintained within SAP Advanced Planner and Optimizer (APO). The company has a significant global reach and is committed to sustainability and innovation in its supply chain processes.
The Challenge
Unilever faced significant challenges in managing its supply chain due to increasing volatility in the market. The company identified five key global trends impacting its operations: multiple channels, sustainability, economic volatility, customer intimacy, and digital savviness. To address these challenges, Unilever needed a more agile supply chain that could handle the growing volatility without resorting to expensive inventory increases. The company aimed to improve its short-term forecast accuracy and reduce working capital tied up in inventory.
The Solution
Unilever partnered with Terra Technology to implement demand sensing and inventory optimisation tools. Terra Technology's Enterprise Demand Sensing Platform automates and synchronises various demand signals to improve short-term forecast accuracy. The Multi-Enterprise Inventory Optimisation platform provides optimal inventory targets across the supply chain, balancing cost and service while minimising waste. The implementation required senior management buy-in and a dedicated project team. The roll-out was phased, starting with more mature areas and gradually building confidence in the system's outputs.
Operational Impact
Quantitative Benefit
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